A-C
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| Adjustment |
|
The modification as of the Distribution Date of the Altria stock options, restricted stock or deferred stock to reflect the PMI Spin-off. |
| Altria |
|
Altria Group, Inc., or one or more of its subsidiaries, as appropriate in context. |
| Altria stock |
|
The common stock of Altria Group, Inc. |
| Altria Stock investment option |
|
The investment option under the DPS Plan that is invested solely in Altria stock. |
| book-entry account statement |
|
A statement reflecting ownership of common stock that is mailed to registered shareholders rather than distributed as physical stock certificates. |
| close of business |
|
The time when trading ends on the New York Stock Exchange. Normally, trading on the New York Stock Exchange ends at 4:00 p.m. Eastern Time. |
| Conduit Fund |
|
The fund established under the DPS Plan to receive the proceeds from any participant who elects to sell all or any portion of the shares of PMI stock (or Kraft stock) allocated to his or her DPS Plan account. |
| cost basis |
|
The cost to the DPS Plan of acquiring Altria stock. Cost basis is used to determine net unrealized appreciation on in-kind distributions of employer securities under a plan such as the DPS Plan. 
D
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| deferred stock |
|
A type of long-term equity compensation that delivers shares of stock to eligible employees after certain service requirements, referred to as the vesting period, are met. |
| Direct Registration System |
|
Common stock issued as uncertificated shares registered in book-entry form. Instead of receiving stock certificates, you will receive a direct registration advice statement reflecting your ownership interest in a stock. |
| discontinued operation |
|
An operation that has been sold or written off and that is no longer maintained by the business. |
| distribution agent |
|
A trust company, bank or similar financial institution assigned by a corporation to effect the distribution of shares in a spin off. |
| Distribution Date |
|
The date on which Altria distributed the PMI shares. The Distribution Date was March 28, 2008, as of 5:00 p.m. New York City Time on that date. |
| Distribution Ratio |
|
The ratio was 1:1. Altria distributed one share of PMI stock for each share of Altria stock outstanding as of the Record Date for the PMI Spin-off. |
| DPS Plan |
|
The DPS Plan is three separate plans with similar features, including the opportunity to invest in the Altria Stock investment option through Real-Time Trading. The names of the three plans are the Deferred Profit-Sharing Plan for Salaried Employees, the Deferred Profit-Sharing Plan for Tobacco Workers and the Deferred Profit-Sharing Plan for Craft Employees.
E-H
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| employer securities |
|
Altria stock held in the Altria Stock investment option, Kraft stock held in the Kraft Stock investment option and PMI stock held in the PMI Stock investment option are each employer securities. |
| Ex-Dividend Date (Cash Dividend) |
|
The first date a security is traded where the buyer will not be considered a shareholder of record. The Ex-Dividend Date for a cash dividend is typically two (2) business days before the Record Date. In order to be a shareholder of record who is entitled to receive a cash dividend you must purchase shares before the Ex-Dividend Date. If you purchase stock on the Ex-Dividend Date or after, you will not receive the next cash dividend payment. |
| Ex-Distribution Date (Stock Dividend) |
|
The first date a security is traded where the buyer will not be considered a shareholder of record. The PMI Spin-off was a stock dividend and was treated differently than a cash dividend. If you sold your shares of Altria stock in the "regular way" market prior to or on the Distribution Date, you also sold your right to receive shares of PMI stock. The Ex-Distribution Date is March 31, 2008. |
| Exercise Price Ratio |
|
The ratio between the grant price of the stock option and fair market value of the underlying shares. This is used to determine the new grant prices of Altria and PMI stock options after the Spin-off. |
| fair market value |
|
The value of stock based on the reported trades on the New York Stock Exchange. |
| Good 'til Canceled |
|
A limit order containing a specific price at which you are willing to buy or sell stock over a specified number of calendar days. |
| grant price |
|
The per share price you must pay the company when you exercise a stock option (i.e., the price at which the option was granted).
I-O
|
| Information Statement |
|
An exhibit to the Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission. A document mailed to Altria shareholders of record that describes the PMI Spin-off in detail and contains important information, including financial statements, about PMI. |
| intrinsic value |
|
The value you would receive if you exercised your option holdings and immediately sold the stock resulting from the exercise (i.e., the difference between the grant price and fair market value). |
| John Middleton, Inc. |
|
A leading manufacturer of machine-made large cigars and a subsidiary of Altria Group, Inc. |
| Kraft |
|
Kraft Foods Inc., a former subsidiary of Altria Group, Inc. |
| Kraft stock |
|
The Class A common stock of Kraft Foods Inc. |
| Kraft Stock investment option |
|
The investment option under the DPS Plan that is invested solely in Kraft stock. |
| market value |
|
The last price for which a security or commodity was bought or sold. |
| net unrealized appreciation |
|
A tax benefit available to a participant who receives an in-kind distribution of employer securities as part of a lump sum distribution or a return of employee contributions from a plan such as the DPS Plan. |
| out-of-the-money |
|
When the grant price of a stock option is greater than the fair market value.
P-R
|
| PMI |
|
Philip Morris International Inc. and its subsidiaries. PMI is a former tobacco subsidiary of Altria Group, Inc. |
| PMI stock |
|
The common stock of Philip Morris International Inc. |
| PMI Stock investment option |
|
A new investment option established under the DPS Plan as of the Distribution Date that will receive and hold PMI stock. |
| PMI DPS Plan |
|
Philip Morris International Deferred Profit-Sharing Plan. |
| PM USA |
|
Philip Morris USA Inc. and its subsidiaries. PM USA is the domestic tobacco subsidiary of Altria Group, Inc. |
| Real-Time Trading |
|
Fidelity's product that allows DPS Plan participants to buy or sell shares of Altria stock, sell PMI stock or Kraft stock at any time during normal New York Stock Exchange market hours. |
| Record Date (Cash Dividend) |
|
When a cash dividend is declared, Altria's Board of Directors sets the Record Date for that dividend. You must be a shareholder of record as of the Record Date in order to receive the cash dividend. The Record Date was March 19, 2008, and ownership was determined as of 5:00 p.m. New York City Time on that date. |
| Record Date (Stock Dividend) |
|
The PMI Spin-off was a stock dividend and was different than a cash dividend. When the stock dividend was declared, Altria's Board of Directors set the Record Date for that dividend. Even after the Record Date for the PMI Spin-off occurred Altria stock continued to be traded on the New York Stock Exchange with the right to receive the PMI stock that was later distributed on the Distribution Date.
The Record Date was March 19, 2008, and ownership was determined as of 5:00 p.m. New York City Time on that date. |
| Registered Shareholder |
|
The person listed on the stock transfer books of a company as being the owner of specified shares. Also known as the shareholder of record. |
| "regular way" |
|
Refers to trading after a security has been issued and typically involves a transaction that settles on the third full business day following the date of the transaction. |
| restricted stock |
|
A type of long-term equity compensation in which an employee receives restricted shares of stock that become unrestricted after certain service requirements, referred to as the vesting period are met.
S-Z
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| settlement date |
|
The date securities must be delivered and paid for to complete a transaction. |
| shareholder of record |
|
The person listed on the stock transfer books of a company as being the owner of specified shares. Also known as Registered Shareholder. |
| Spin-off |
|
The distribution on the Distribution Date of 100% of the shares of Philip Morris International Inc. to Altria's shareholders. |
| Stock Appreciation Rights (SARs) |
|
A type of long-term equity compensation in which an employee is entitled to receive a cash payment equal to the appreciation in the value of stock from the date of grant of the stock appreciation right. |
| stock option |
|
A right granted by a corporation to employees as a form of compensation that allows purchase of corporate stock at a fixed price usually within a specified period. |
| tax free spin off |
|
A distribution by a parent company to its shareholders of all shares of a subsidiary in a transaction that is generally tax free to U.S. shareholders for U.S. federal income tax purposes. |
| transfer agent |
|
A trust company, bank or similar financial institution assigned by a corporation to maintain records of investors and account balances and transactions, to cancel and issue certificates, to process investor mailings and to deal with any associated problems (e.g., lost or stolen certificates). |
| "when issued" |
|
Refers to a transaction made conditionally because the security has been authorized but not yet issued.
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